Question: Please check if I answer correctly: Question 1 (2 points) Saved What is the efficient frontier in the Capital Asset Pricing Model? O The capital

Please check if I answer correctly:

Question 1 (2 points) Saved What is the efficient frontier in the Capital Asset Pricing Model? O The capital market line or CML O The capital allocation line or CAL The characteristic curve to the right of the minimum variance efficient (MVE) portfolio The security market line or SMLQuestion 2 (10 points) Saved Assume the CAPM holds. You are holding a portfolio with the beta of 2 and the standard deviation of 60%. The expected return on the market portfolio is 15% and the standard deviation of returns on the market portfolio is 20%. The risk-free rate is 4%. How much more expected return without increase in the risk of your portfolio can you earn if you make your portfolio efficient? 11% more than I earn now 10% more than I earn now O 17% more than I earn now O My portfolio is already efficient, I cannot earn more without increasing the risk of my portfolio 13% more than I earn nowQuestion 3 (2 points)

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